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TMI Blog1998 (5) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... erver or Terminal Server manufactured by the appellant under Chapter sub-heading No. 8473.00 of Central Excise Tariff Act, 1985. 2. The impugned orders were passed on the revised classification List No. 2/93-94 filed by the appellant seeking to classify Terminal Server under Chapter Heading No. 84.71. The Assistant Collector rejected this claim of classification under Heading 84.71 on the ground that the product did not satisfy the condition laid down under Chapter Note 5(b)(ii) of Chapter 84 and classified the same under Heading 84.73 as an accessory part of the computer. The Commissioner (Appeals) confirmed this order on the ground that the product is not an independent machine/automatic data processing machine since it cannot function ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - (i) Digital machines, capable of (1) storing the processing programme or programmes and atleast the data immediately necessary for the execution of the programme; (2) being freely programmed in accordance with the requirements of the user; (3) performing aritmetical computations specified by the user; and (4) executing, without human intervention, a processing programme which requires them to modify their execution, by logical decision during the processing run; (ii) Analogue machines capable of simulating mathematical models and comprising at least : analogue elements, control elements and programming elements; (iii) Hybrid machines consisting of either a digital machine with analogue elements or an analogue machine with digital el ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant para of Chapter Note 5 is para (b) and not (a). According to (b) automatic data processing machines may be in the form of systems consisting of a variable number of separately-housed units. Para (b) has the following conditions for regarding a unit as being part of the complete system :- (1) It must be connectable to the central processing unit either directly or through one or more other units. (2) It must be specifically designed as a part of such system and be able to accept or deliver data in a form (code or signals) which can be used by the system. 7. It is unfortunate that neither the original authority nor the appellate authority considered whether the product of the appellant is a unit as explained in Chapter Note 5(b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s (programme), furnish data which can be used as such or, in some cases, serve in turn as data for other data processing operations. He insisted that the above passage would show that the appellant s product is not a data processing machine. We find at page 1298 of the Chapter Notes, further explanation identical in terms of Chapter Note 5(b) of Central Excise Tariff Act. The above quoted passage explains what machines are to be regarded as automatic data processing machines." 10. The controversy in this appeal is not whether the appellant s product is automatic data processing machine or not; the controversy is whether the product is a unit and has to be regarded as a unit of a system of automatic data processing machine. There is no fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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